Now you can buy medical insurance much like you buy monthly Netflix membership – Mint

26September 2020

A 20 lakh medical insurance cover for a 30 year old may cost around 13,000 for one year. Many individuals delay their decision to buy a medical insurance policy as they do not wish to shed out this sum in one go. Here’s an option. A brand-new digital health and health market place, Important is providing monthly membership plan for medical insurance much like you pay your monthly EMIs or pay for your Netflix membership on a monthly basis.

Important has actually developed monthly membership strategies from scratch, which are not connected to a credit card. “While life insurance coverage companies allow to pay premiums on a monthly, yearly or quarterly basis, medical insurance offers yearly model for superior payment. By providing monthly membership model where individuals can pay the premiums on a monthly basis, we intend to make medical insurance buying more affordable. This will also help to increase insurance coverage penetration in our country,” states Jayan Matthews, co-founder and CPO at Important.

IRDAI, the Insurance Regulator allowed monthly superior payment mode in September 2019 but the majority of health insurance companies still adhere to annual superior payment.

Mathews also informs as cost increase, typical insurance coverage cover also increases. “Typical medical insurance cover that the majority of people prefer to buy is around 3 lakh but due to the monthly premium pay model, the typical insurance coverage size on Important platform is 10 lakh,” states Mathews.

As of now, Important has actually consolidated Care Health Insurance (previously called Religare Health Insurance) to supply health cover to individuals. For group policies, Important is dealing with Bharti Axa and ICICI Lombard and Care Health.

Continuing with the exact same example, for a comparable 20 lakh medical insurance cover, a 30 year old healthy individual will require to pay around 700 monthly via Important platform. Regular monthly premium of a few hundreds looks extremely affordable as against paying over 10,000 for a year in one go.

Important also provides ‘deductible’ facility which will lower the expenses even further. The deductible is the amount of money you will need to pay for your health expenses before your medical insurance strategy coverage begins in a given policy year. Higher the deductible, the lower your premiums.

Here’s how deductible assists to reduce your premium cost. In the above example, if the 30 year old individual adds a deductible of 35,000 in the exact same policy cover of 20 lakh, the premiums will majority from 700 each month to 300 each month.

A deductible of 1 lakh will reduce the premium to 230 each month.

Regular monthly membership model for medical insurance can be beneficial for those who have lost their tasks or suffered pay cuts during the recent couple of months in the middle of Covid. However, currently the option to choose a medical insurance supplier with Important’s monthly membership strategy is limited. Hope more insurance companies embrace monthly superior payment for its insurance policy holders to make this effort a broad success.

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